Prices were generally higher in the cattle market. Feeders are heating up and cash cattle have finally drug themselves out of the rut they have been in for what feels like an endless amount of time. Slaughter speeds seem to be increasing and boxed beef prices continue their declines.
Live cattle futures were a few dollars higher this past week. The June contract closed Thursday at $122.82 and the August contract at $122.62, compared to the previous Friday’s number of $118.70 and $120.02, respectively.
Cash trade through the week ranged mostly from $122-126 and dressed steers sold from $197-202, several dollars higher than a week earlier. Volume has been light, and will likely parallel the numbers of the week earlier. Formula cattle have been selling at the upper end of $190, around $198.
The week prior, only a total of 79,496 head traded on the negotiated cash market. However, prices were steadily higher, with premiums of about $4 over the prior week. Live steers averaged $122.91 and dressed steers averaged $195.78.
The Fed Cattle Exchange listed 5,844 cash cattle Wednesday for its weekly virtual sale. Of that, only 64 fed heifers sold for $122. Bids for other lots ranged from $118-120. Reserve prices were listed mostly at $118-124.
Slaughter through Thursday totaled 475,000 head, a few thousand head short of the same time a week earlier. The prior week’s total slaughter is expected to reach 663,000 head, close to the industry’s 670,000-head target. USDA actual slaughter data for the week ending June 12 showed slaughter reached 670,297 head, a welcome sight to see.
Carcass weights have dropped to a new 2021 low at 882 lbs. “The takeaway here is that most likely, carcass weights are stabilizing in the 880-to-890-pound range and will track above all other years except 2020 through the summer,” reported Cassie Fish, market analyst in The Beef.
Boxed beef prices are steadily declining, with the Choice cutout sitting at $312.05 and the Select cutout at $275.41, down about $13.50 and $30, respectively. The Choice-Select spread is still at high records at $31.28.
Feeder cattle
Feeders have been steadily gaining and were up $6-7 higher this week. The August contract closed at $157.15 and the September contract at $159.20. The CME Feeder Cattle Index closed several dollars higher from the previous week at $146.49. Corn prices have trended lower over the past week. The July contract settled at $6.53 and the September contract at $5.49.
The long-awaited Senate hearing on the cattle markets took place June 23 and has many wondering what will come out of it.
“Politicians proved the wisdom of why it is generally ill advised to turn free markets over to legislatures to proscribe how markets should function,” remarked the folks at the Cattle Report.
“Congressional hearings are often motivated by politicians seeming to care but the populists’ rhetoric gets overblown and few rational remedies are discovered in the hearing rooms.”
Drought remains an issue for producers and the threat of fire looms over the heads of many. Herd liquidation is on many producers’ minds. The Cattle Report also noted rain in the Midwest during the summer period is critical, as it will determine crop yields for the year.
Kansas: Winter Livestock in Dodge City sold 1,539 head Wednesday. Compared to the prior sale, feeder steers 625-925 lbs. sold steady to $2 higher. Feeder heifers 625-775 lbs. sold $1-2 higher. Heifers 775-850 lbs. sold $1-2 lower. Benchmark steers averaging 792 lbs. sold between $140-143.
Missouri: Joplin Regional Stockyards in Carthage sold 5,000 head Monday. At mid-session, feeder steers traded $3-5 higher, and feeder heifers traded $3-6 higher with the most advance on heavier weights. Benchmark steers averaging 768 lbs. sold between $141-148.
Nebraska: Bassett Livestock in Bassett sold 7,060 head on Wednesday. This was the first reported sale in recent weeks, so a market trend is not possible. Steers between 550-595 lbs. sold between $175.50-187.50; 650-693 lbs. sold between $164-174.25; 704-744 lbs. sold from $161.50-166.75; and 804-834 lbs. sold between $151-159.75.
New Mexico: Roswell Livestock in Roswell sold 900 head on Monday. Compared to the previous auction, feeder steers and calves were steady to $3 higher; a few 300-400 lbs. sold $7 higher. Feeder heifers and calves sold $2-4 higher. A small group of steers averaging 624 lbs. sold for $166.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 8,750 head Monday. Feeder steers and heifers sold $1-3 lower. Benchmark steers averaging 778 lbs. sold between $139-150.
South Dakota: Sioux Falls Regional Livestock in Worthing sold 6,284 head on Monday. Compared to the last week, feeder steers sold steady to $5 higher; heifers were $2-5 higher. Benchmark steers averaging 787 lbs. sold between $144.75-154.75. — Anna Miller, WLJ managing editor
